Ars readers will remember that when iTunes Plus was introduced, it offered higher-quality, DRM-free tracks for $1.29 each before Apple reduced prices back to 99¢ across the board. Today, Apple promised that by the end of this quarter, all 10 million iTunes songs will be DRM-free, and released at the higher-quality 256 kbps iTunes Plus bitrate. This policy change applies across the board to all four major music labels (Universal Music Group, Sony BMG, Warner Music Group, and EMI) as well as thousands of independent labels.

"We are thrilled to be able to offer our iTunes customers DRM-free iTunes Plus songs in high quality audio and our iPhone 3G customers the ability to download music from iTunes anytime, anywhere over their 3G network at the same price as downloading to your computer or via Wi-Fi," said non-Macworld-attending Apple CEO Steve Jobs in a statement. The price change policy will take effect in April of this year.

The 69¢ price point will likely apply to back catalog tracks, while the $1.29 per track price will probably be linked to the newest releases and exclusive singles. Flexible pricing has long been expected as a condition of iTunes universally dropping its digital rights management (DRM) and it seems like today's announcement represents a realization of that compromise.

So does this represent a win for iTunes customers? Certainly the move away from DRM is a step forward for all customers. As for the tiered pricing, it depends on how you shop for and listen to music. If you prefer to listen to the newest, hottest tracks, this move will likely represent a 30 percent hit on the pocketbook, albeit a DRM-free and (likely) higher-quality hit. For back catalog customers, the lower 69¢ per track price may prove welcome, although it's unclear how album prices will be affected. Many album purchases, both recent and back-catalog, already have per-track prices that are significantly lower than 99¢/track.

Be sure to keep checking Infinite Loop for the latest from Macworld 2009.